Epigral Ltd · NSE:EPIGRAL
Epigral — Q2 FY2025 Earnings Presentation
41 slides from Epigral's earnings presentation, Nov 9, 2024
Slide 1: Stock exchange cover letter for Q2 FY2025 investor presentation
09.11.2024 To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SYMBOL:- EPIGRAL Scrip Code: 543332 Dear Sirs, Sub.: Investors Presentation for Un-Audited Financial Results – Q
Slide 2: Epigral Limited Investor Presentation – Q2FY25
Epigral Limited (formerly known as Meghmani Finechem Limited) Investor Presentation – Q2FY25
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Epigral Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form
Slide 4: Q2FY2025 Result update
EPIGRAL Q2FY2025 Result update
Slide 5: Q2FY25 - Key Highlights
Q2FY25 - Key Highlights Q2FY25 Operational Highlights: o Sales volume grew 6% YoY, it majorly comes from Derivatives and Specialty business o Capacity utilization stood at 83% in Q2FY25 vs 77% in Q2FY24 o YoY realizations dropped for all the products in range of 1% to 7%, except for Chloromethanes o
Slide 6: H1FY25 - Key Highlights
H1FY25 - Key Highlights H1FY25 Operational Highlights: o Sales volume grew 17% YoY, it majorly comes from Derivatives and Specialty business o Capacity utilization stood at 83% in H1FY25 vs 74% in H1FY24 o Realizations dropped for all the products in H1FY25 vs H1FY24 H1FY25 Financial Highlights: o R
Slide 7: H1FY25 - Strategic Highlights
H1FY25 - Key Highlights H1FY25 Strategic Highlights: o Epigral spent ₹ 79 Crore on capex in H1FY25 o Epigral’s board has approved to double its CPVC Resin and Epichlorohydrin (ECH) Capacity o CPVC Resin capacity will reach to 1,50,000 TPA, by adding additional 75,000 TPA o Epichlorohydrin capacity w
Slide 8: CMD Message
CMD Message “Epigral witnessed the topline growth of 37% in H1FY25, on account of 17% sales volume growth coming from high value products of Derivatives and Specialty business, despite marginal drop in realizations for all the products. Revenue contribution from Derivative and Specialty business has
Slide 9: Q2FY25 Financial Highlights
Q2FY25 Financial Highlights Revenue from Operations EBIDTA PAT 651 626 29% 27% 13% 13% 176 23% 178 478 86 8% 81 108 38 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 ₹ Crore Margin -%
Slide 10: H1FY25 Financial Highlights
H1FY25 Financial Highlights Revenue from Operations EBIDTA PAT 28% 1,277 13% 22% 355 933 7% 203 166 70 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H2FY25 ₹ Crore Margin -%
Slide 11: Key ratios as on 30th September 2024
Key ratios as on 30th September 2024 ROCE (%)*# ROE (%)* Net Debt/EBITDA (x)* 24% 23% 1.8 21% 21% 22% 21% 1.6 1.4 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 *TTM EBIT, PAT and EBITDA are considered for above ratios #Capital employed in ROCE includes Capital Work in Progress
Slide 12: Revenue Transition towards Derivatives & Specialty Chemicals
Revenue Transition towards Derivatives & Specialty Chemicals 59% 54% 53% 53% 52% 47% 48% 47% 46% 41% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 - Chlor-Alkali - Derivatives & Specialty Chemical
Slide 13: Capex Plan – Enhancing CPVC and Epichlorohydrin capacity
Capex Plan – Enhancing CPVC and Epichlorohydrin capacity CPVC Epichlorohydrin (ECH) Project Details Project Details o Additional capacity – 75,000 TPA o Additional capacity – 50,000 TPA o Total capacity after expansion – 1,50,000 TPA o Total capacity after expansion – 1,00,000 TPA (World’s largest p
Slide 14: Capex Project Update as on 30th September 2024
Capex Project Update as on 30th September 2024 Capex Spends - ₹ Crore Expected % of project Product Capacity Commissioning completed Date CPVC Resin Commissioned 45 KTPA (Additional) 3rd April 2024 CPVC Commissioned 35 KTPA Compound 29th June 2024 Chlorotoluenes 416 405 - Q2FY25 95% 221 Value Chain
Slide 15: Income Statement
Income Statement Quarterly Half Yearly Particulars (₹ Crore) Q2FY25 Q2FY24 YoY % Q1FY25 QoQ % H1FY25 H1FY24 YoY % Total Revenue 632 479 32% 654 -3% 1,285 936 37% Gross Profit 262 176 49% 262 0% 524 339 54% Gross Margin (%) 42% 37% 40% 41% 36% EBITDA 178 108 65% 176 1% 355 203 75% EBITDA Margin (%) 2
Slide 16: Balance Sheet
Balance Sheet Liabilities (₹ Crore) FY23 FY24 H1FY25 Assets (₹ Cr) FY23 FY24 H1FY25 Share Capital 42 42 42 Fixed Assets 1,962 2,249 2,262 Reserves & Surplus 1,028 1,213 1,358 Financial Assets 28 29 28 Long-Term Borrowings 435 492 467 Other Non-current Assets 23 14 15 Redeemable Preference Shares 100
Slide 17: Company Overview
EPIGRAL Company Overview
Slide 18: Company Overview
Company Overview Founded: 2007 33% 28% 4 Year Revenue CAGR (FY24) 4 Year EBITDA CAGR (FY24) Employees: ~ 1000 0.8x 17% Debt to Equity (FY24) ROCE (FY24) Capacity: Chlor-Alkali# – 421 KTPA Derivatives# – 235 KTPA Revenue from operations (₹ Crore) 2,188 1,929 Certified: 1,551 Responsible Care Certific
Slide 19: Our Journey
Our Journey FY 2007 FY 2010 FY 2015 FY 2017 FY 2020 Epigral Ltd (MFL) Commissioned 1st Increased capacity to Commissioned Commissioned incorporated Plant • Caustic Potash – • Chloromethanes – • Caustic Soda – 167 21 KTPA 50 KTPA • Caustic Soda – 119 KTPA KTPA • CPP – 60 MW Converted all Announced Ca
Slide 20: Our Values
Our Values Together, in caring and agile manner, we make it happen
Slide 21: Chlor-Alkali
Chlor-Alkali Caustic Soda (NaOH) Caustic Potash (KOH) Expected demand CAGR: ~ 8% Expected Demand CAGR: ~ 8% Alumina Textile Chemicals Agrochemicals API o We are 4th largest producer in India o We are 3rd largest producer in India o Caustic Soda is basic raw material and caters to many o Caustic
Slide 22: Derivative Products
Derivative Products Chloromethanes (CMS) Hydrogen Peroxide (H2O2) Expected demand CAGR: ~ 12% Expected demand CAGR: ~ 10% Solvent in Pharma PTFE Pipes Refrigerant Gas Paper & pulp Textile Chemicals o We are 5th largest producer in India o We are 3rd largest producer in India o CMS plant produces
Slide 23: Derivatives & Specialty Chemicals
Derivatives & Specialty Chemicals CPVC Epichlorohydrin (ECH) Expected demand CAGR: ~ 13% Expected demand CAGR: ~ 15% Wind mill Automobile Adhesives Pipes and Fixtures o Largest producer in India o 1st company in India to produce sustainable bio based ECH o Key raw material for heat resistant pip
Slide 24: Derivatives & Specialty Chemicals
Derivatives & Specialty Chemicals Chlorotoluenes Value Chain Expected demand CAGR: Double digit % Agrochemicals API o 1st company in India to commission this value chain o Will serve Intermediates for manufacturing pharmaceutical and agrochemical active ingredients o In 1st phase, ~ 10 to 12 set o
Slide 25: Diversified and integrated portfolio
Diversified and integrated portfolio Fully Integrated Product Portfolio CPVC High Value Products Import Substitution – Make in India H2O2 ECH Chlor- Alkali Diversified End User Industries Chlorotoluene Sole Manufacturer of ECH in India CMS & value chain Diversifying Portfolio; De-Risking Business Mo
Slide 26: Fully Integrated Complex
EPIGRAL Fully Integrated Complex =» ce GEE Caustic Soda Flakes Caustic Soda istic Potash z ==D «°c» ae Chlorine Gas Pipeline CHES Ligue HEL 30% Methylene Dichloride Chloromethanes Hydrogen Chloroform Hydrogen Peroxide Carbon Tetra Chloride Dil. Sulfuric Acid 78% Hydrogen Gee mae Epichlorohydrin Hydr
Slide 27: Competitive Strength
Competitive Strength Well Invested Infrastructure Well established brand o State of the art manufacturing facility o Epigral is a known brand in Indian chemical market o Strategic location with close connectivity to ports o Serving domestic customers for last 14 Yrs and raw material availability. o
Slide 28: Catering to high growth industries
Catering to high growth industries Increased market potential & higher growth exposure Refinery Paper & Pulp Fluoropolymers Soap & Detergents Textiles Dyes & Pigment Pharmaceuticals Agrochemicals Alumina PU Foams Paints PTFE Pipes CPVC Pipes Refrigerant Gas Water Treatment Electronics The addressabl
Slide 29: Key Customers
EPIGRAL Key Customers GVearsoite Supr eme:? > SOLENIS. GEL Hsé Chemistry for Tomorrow — Begnie Ml who know eme ics best GUJARAT FLUOROCHEMICALS “The Chemical People AXASTRAL (Qinis) ETE) SNF Cll WATER SCIENCE Ze, 3 vedanta by 4 A of | pc Ca Som - transforming for good of life GRASIM Enduring Value
Slide 30: Capacities
Capacities Manufacturing Plant Capacity (KTPA) 400 H1FY27 75 50 H1FY27 - 75 60 50 50 21 Chlorotoluenes Value Caustic Soda CPVC Resin Epichlorohydrin Chloromethanes Hydrogen Peroxide Caustic Potash Chain Expected Commissioning, * Commissioning date
Slide 31: Transitioning towards Derivatives & Specialty Chemicals
Transitioning towards Derivatives & Specialty Chemicals ~ 30% 45% FY2024Derivatives FY2027(E) 55% 26% ~ 70% Derivatives & Specialty Chlor-Alkali Derivatives & Specialty Chlor-Alkali Revenue from the derivatives and specialty segment to be ~ 70% by FY27E Derivatives & Specialty – CPVC Resin, Epichlor
Slide 32: Research & Development Centre
Research & Development Centre o A step towards strengthening presence in Specialty chemicals o Location Changodar, Ahmedabad o R&D center will be used for creating further molecules for Chlorotoluene and other new molecules, which will be intermediates for pharmaceutical and agrochemical active ingr
Slide 33: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Entered in JV to set up 18.34 MW W
Slide 34: Experienced and qualified board
Experienced and qualified board Mr. Maulik Patel Mr. Kaushal Soparkar Mr. Karana Patel Mr. Ankit Patel Chairman & Managing Director Executive Director Non-Executive, Non-Independent Director Non-Executive, Non-Independent Director He has 16 years of experience in the He has 15 years of experience in
Slide 35: Growth Strategy
Growth Strategy Forward & Backward Opportunities in high New Value Chains: Achieving economies Integration: growth sectors: of scale: o Scale up capacities in o Explore opportunities o Expand chemistry o Optimising existing existing products in various sectors expertise to enter complex o New value
Slide 36: Historical numbers
EPIGRAL Historical numbers
Slide 37: Financial Performance – P&L
Financial Performance – P&L Revenue from operations (₹ Crore) EBIDTA (₹ Crore and %) PAT (₹ Crore and %) 2,188 1,929 32% 33% 31% 32% 1,551 25% 689 18% 16% 16% 509 12% 10% 481 829 353 611 253 261 196 194 112 101 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY202
Slide 38: Balance Sheet Ratios
Balance Sheet Ratios ROCE (%)# ROE (%) Net Debt/EBITDA (x) 39% 32% 36% 29% 2.70 17% 21% 2.10 1.99 16% 1.90 15% 17% 16% 1.30 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 #Capital employed in ROCE includes Capital Work in Progress
Slide 39: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY20 FY21 FY22 FY23 FY24 Total Revenue 613 831 1,555 2,196 1,936 Gross Profit 300 407 716 951 763 Gross Margin (%) 49% 49% 46% 43% 40% EBITDA 194 261 509 689 481 EBITDA Margin (%) 32% 32% 33% 31% 25% Depreciation 44 74 86 109 124 Finance Cost 11 29 44 66
Slide 40: Historic Balance Sheet
Historic Balance Sheet Liabilities (₹ Cr) FY22 FY23 FY24 Assets (₹ Cr) FY22 FY23 FY24 Share Capital 42 42 42 Fixed Assets 1,657 1,962 2,249 Reserves & Surplus 684 1,028 1,213 Financial Assets 8 28 29 Long-Term Borrowings 557 435 492 Other Non-current Assets 11 23 14 Redeemable Preference Shares 211
Slide 41: For further information
For further information Epigral Limited (Epigral), formerly known as Meghmani Finechem Ltd, incorporated in 2007, is a leading integrated manufacturer of chemicals in Please log on to website - www.epigral.com India. Epigral’s Dahej facility is a backward and forward integrated and automated complex